Getting Private Cloud Right Takes Unconventional Thinking

Recent Forrester inquiries from enterprise infrastructure and operations (I&O) professionals show that there's still significant confusion between infrastructure-as-a-service (IaaS) private clouds and server virtualization environments. As a result, there are a lot of misperceptions about what it takes to get your private cloud investments right and drive adoption by your developers. The answers may surprise you; they may even be the opposite of what you're thinking.

From speaking with Forrester clients who have deployed successful private clouds, we've found that your cloud should be smaller than you think, priced cheaper than the ROI math would justify and actively marketed internally - no, private clouds are not a Field of Dreams. Our latest report, "Q&A: How to Get Private Cloud Right," details this unconventional thinking, and you may find that internal clouds are much easier than you think.

First and foremost, if you think the way you operate your server virtualization environment today is good enough to call a cloud, you are probably lying to yourself. Per the Forrester definition of cloud computing, your internal cloud must be:

  1. Highly standardized - meaning that the key operational procedures of your internal IaaS environment (provisioning, placement, patching, migration, parking and destroying) should all be documented and conducted the same way every time.
  2. Highly automated - and to make sure the above standardized procedures are done the same time every time, you need to take these tasks out of human error and hand them over to automation software.
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A Key Decision Is Often Clouded By Emotion

What is one of the most important decisions infrastructure & operations (I&O) professionals face today? It's not whether to leverage the cloud or build a private cloud or even which cloud to use. The more important decision is which applications to place in the cloud, and sadly this decision isn't often made objectively. Application development & delivery professionals often decide on their own by bypassing IT. When the decision is made in the open with all parts of IT and the business invited to collaborate, emotion and bravado often rule the day. "SAP's a total pain and a bloated beast, let's move that to the cloud," one CIO said to his staff recently. His belief was if we can do that in the cloud it will prove to the organization that we can move anything to the cloud. Sadly, while a big bang certainly would garner a lot of attention, the likelihood that this transition would be successful is extremely low, and a big bang effort that becomes a big disaster could sour your organization on the cloud and destroy IT's credibility. Instead, organizations should start with low risk applications that let you learn safely how to best leverage the cloud — whether public or private.

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“Big Data” Technology: Getting Hotter, But Still Too Hard For Most Developers

“Big Data” is coming up more often on the agendas of key vendors as well as some of the more-advanced users of information management technology. Although some of this increased activity reflects PR calendars – companies promote new offerings in the Spring – there’s more than that going on. The range of design patterns that fall under this large umbrella are genuinely on the increase in a wider range of usage scenarios, driving continuing innovation from both technology providers and users. In part because of the frequent use of open source technology such as Apache Hadoop to implement “Big Data,” this is the type of innovation the industry most needs at this early stage of the market. A few key data points:

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ERP Grows Into The Cloud: Reflections From SuiteWorld 2011

Cloud computing continues to be hyped. By now, almost every ICT hardware, software, and services company has some form of cloud strategy — even if it’s just a cloud label on a traditional hosting offering — to ride this wave. This misleading vendor “cloud washing” and the complex diversity of the cloud market in general make cloud one of the most popular and yet most misunderstood topics today (for a comprehensive taxonomy of the cloud computing market, see this Forrester blog post).

Software-as-a-service (SaaS) is the largest and most strongly growing cloud computing market; its total market size in 2011 is $21.2 billion, and this will explode to $78.4 billion by the end of 2015, according to our recently published sizing of the cloud market. But SaaS consists of many different submarkets: Historically, customer relationship management (CRM), human capital management (HCM) — in the form of “lightweight” modules like talent management rather than payroll — eProcurement, and collaboration software have the highest SaaS adoption rates, but highly integrated software applications that process the most sensitive business data, such as enterprise resource planning (ERP), are the lantern-bearers of SaaS adoption today.

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Cloud Computing Will Save IT Millions, But Only If You Have Elastic Applications

Do you keep every single light on in your house even though you are fast asleep in your bedroom?

Of course you don't. That would be an abject waste. Then why do most firms deploy peak capacity infrastructure resources that run around the clock even though their applications have distinct usage patterns? Sometimes the applications are sleeping (low usage). At other times, they are huffing and puffing under the stampede of glorious customers. The answer is because they have no choice. Application developers and infrastructure operations pros collaborate (call it DevOps if you want) to determine the infrastucture that will be needed to meet peak demand.

  • One server, two server, three server, four.
  • The business is happy when the web traffic pedal is to the floor.
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Painting The IT Industry Landscape

All of us in the technology industry get caught up in the near-term fluctuations and pressures of our business. This quarter’s earnings, next quarter’s shipments, this year’s hiring plan . . . it’s easy to get swallowed up by the flood of immediate concerns. So one of the things that we work hard on at Forrester, and that our clients value in their relationships with us, is taking a few steps back and looking at the longer-term, bigger picture of the size and shape of the industry’s trajectory. It provides strategic and financial context for the short-term fluctuations and trends that buffet all of us.

I am lucky to co-lead research in Forrester's Vendor Strategy team, which is explicitly chartered to predict and quantify the new growth opportunities and disruptions facing strategists at some of our leading clients. We will put those predictions on display later this month at Forrester's IT Forum, our flagship client event. Among the sessions that Vendor Strategy analysts will be leading:

  • "The Software Industry in Transition": Holger Kisker will preview his latest research detailing best practices for software vendors navigating the tricky transition from traditional license to as-a-service pricing and engagement models.
  • "The Computing Technologies of 2016": Frank Gillett will put us in a time machine for a trip five years into the future of computing, storage, network, and component technologies that will underpin new applications, new experiences, and new computing capabilities.
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Intel Shows the Way Forward, Demos 22 nm Parts with Breakthrough Semiconductor Design

What Intel said and showed

Intel has been publishing research for about a decade on what they call “3D Trigate” transistors, which held out the hope for both improved performance as well as power efficiency. Today Intel revealed details of its commercialization of this research in its upcoming 22 nm process as well as demonstrating actual systems based on 22 nm CPU parts.

The new products, under the internal name of “Ivy Bridge”, are the process shrink of the recently announced Sandy Bridge architecture in the next “Tock” cycle of the famous Intel “Tick-Tock” design methodology, where the “Tick” is a new optimized architecture and the “Tock” is the shrinking of this architecture onto then next generation semiconductor process.

What makes these Trigate transistors so innovative is the fact that they change the fundamental geometry of the semiconductors from a basically flat “planar” design to one with more vertical structure, earning them the description of “3D”. For users the concepts are simpler to understand – this new transistor design, which will become the standard across all of Intel’s products moving forward, delivers some fundamental benefits to CPUs implemented with them:

  • Leakage current is reduced to near zero, resulting in very efficient operation for system in an idle state.
  • Power consumption at equivalent performance is reduced by approximately 50% from Sandy Bridge’s already improved results with its 32 nm process.
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CIOs: At What Stage Is Your Thinking On Cloud Economics?

Is your cloud strategy centered on saving money or fueling revenue growth? Where you land on this question could determine a lot about your experience level with cloud services and what guidance you should be giving to your application developers and infrastructure & operations teams. According to our research the majority of CIOs would vote for the savings, seeing cloud computing as an evolution of outsourcing and hosting that can drive down capital and operations expenses. In some cases this is correct but in many the opposite will result. Using the cloud wrong may raise your costs.

But this isn’t a debate worth having because it’s the exploration of the use cases where it does save you money that bears the real fruit. And it’s through this experience that you can start shifting your thinking from cost savings to revenue opportunities. Forrester surveys show that the top reasons developers tap into cloud services (and the empowered non-developers in your business units) is to rapidly deploy new services and capabilities. And the drivers behind these efforts – new services, better customer experience and improved productivity. Translation: Revenues and profits.

If the cloud is bringing new money in the door, does it really matter if it’s the cheaper solution? Not at first. But over time using cloud as a revenue engine doesn’t necessarily mean high margins on that revenue. That’s where your experience with the cost advantaged uses of cloud come in.

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